Assessment of Village Organizations/Banks under AusAID-LSP in three districts of Khyber Pakhtunkhwa

2013

Planning & Monitoring Section,

SRSP

Assessment of Village Organizations/Banks under AusAID-LSP in three districts of Khyber Pakhtunkhwa

2

-

Study team

Design, Concept, assessment tools, Analysis and Report by:

Mr. Atif Zeeshan Rauf, PM PMER, SRSP

Technical Inputs:

Mr. Wasiq Ali Khan, PM MF, SRSP

Mr. Atif Zeeshan Rauf, PM, PMER, SRSP

Atta Ullah, Independent Consultant

Data Collection Team:

Atta Ullah, Independent Consultant

Saleem Shah, Independent Consultant

Asif Jehanzeb Khan, PO, MER, SRSP

PO MER Officers of Charsadda, Nowshera and Peshawar (LSP)

Logistic Support:

LSP District Programme Officers

The study has been supported by Sarhad Rural Support Programme. The views expressed in this report are those of the authors and may not

reflect views of SRSP and AusAID. The study team takes responsibility of errors and omissions (if any).

3

Table of Contents

Description

Page

5-7

8-10

11-13

14-18

19-21

22-38

1

Introduction and Background

2

VOs/VBs under AusAID-LSP

3

The study

4

Major Findings

5

Conclusion and Way Forward

Annexes

4

List of Abbreviations

AusAID Australian Aid for International Development

BK PAP Bacha Khan Poverty Reduction Programme

BoD Board of Directors

CEW Credit Extension Worker

CIF Community Investment Fund

KP Khyber Pakhtunkhwa

LSP Livelihood Strengthening Programme

MF Micro Finance

SRSP Sarhad Rural Support Programme

VOs Village Organizations

VBs Village Banks

5

Table 01- Outreach of Microcredit

Data point Finding

Number of MFIs reporting 3,652

Total number of client 205, 314,502

Total number of women 153,306,542

Total number of poorest clients 137,547,441

Total number of poorest women 113,138,652

Population benefited @ 5 per household Over 1 billion Source: State of the Microcredit Summit Campaign report, 2012

1.1 Micro Credit and socio economic development; the bigger picture

The imposition of the World Bank and IMF’s Structural Adjustment Policies (SAP) in 1980s

characterized by huge cuts in social sector programs coupled with low or no safety nets and

unemployment exacerbated existing poverty levels in many under developed countries. These

free market policies severely affected poor women and their families especially in South Asian

Region. Notwithstanding flaws of these policies, the neo classical economists continued to

argue that ‘market failure’ has been a main hurdle in poverty alleviation. In response, new

strategies laying emphasis on extension of microcredit to support small scale micro enterprises

for poor and vulnerable, especially,

women were developed and

implemented to address ‘market

failure’ and develop an informal

sector. The underlying premise was

that these income generating strategies

had a potential of addressing micro

level needs poor population and enhancing overall economic growth of seven core1 countries of

South Asian Region. The success of these income generating strategies during the 1980s and

1990s reinforced the conviction and brought together major stakeholders in to a common policy

framework of expanding and deepening these income generating interventions. Today there is

a global consensus that micro credit and establishment of micro enterprises are in amongst core

1 Core Countries Comprise Bhutan, Bangladesh, India, Maldives, Nepal, Pakistan, and Sri Lanka (South Asian Association for Regional Cooperation, 2011)

1 Introduction and

Background

6

elements for social and economic development vis-à-vis empowerment of poor, especially,

women in underdeveloped countries as presented in the table.

1.2 SRSP; a strategic player in micro finance in Khyber Pakhtunkhwa

Sarhad Rural Support Programme, a leading non profit, non government organization over the

years has been a major strategic player on landscape of micro finance in Khyber Pakhtunkhwa

(KP). The word strategic is used as SRSP’s micro finance programme may not be huge in terms

of disbursements but it definitely is innovative improvising regularly through incorporating

field experiences and keeping context of Khyber Pakhtunkhwa in view. Notwithstanding,

context and challenges, SRSP, so far, since inception has disbursed over a billion PKR (10

million US$) to poor and vulnerable population. The programme as mentioned has been

revamped since 2004-05 with a shift in focus, introduction of innovative packages and devising

new strategies. Under new programme (approx) PKR 7002 million micro loans have been

disbursed to, mostly, women in urban and rural areas of KP.

1.3 Innovative micro finance ventures; Shift in focus from men to women clients

The women’s disproportionate representation amongst the poorest, discrimination against them

in formal sectors, and their vulnerability builds a strong case for SRSP micro finance section to

target women in rural and urban areas. SRSP strategy of targeting women is based on a

common belief that women, in comparison to men, have a tendency to invest loan

productively3. Access to small loans, in view of SRSP, has multiple objectives of satisfying

practical gender needs; access to material assets and strategic gender needs; overcoming

prevailing patriarchal system and demanding share of family resources. In addition, targeting

women seemed to be influenced by convergence of three distinct and inter-related paradigms of

micro finance; poverty alleviation, financial self sustainability and empowerment paradigms

assuming that access to income generating activities leads to social, economic and political

empowerment of women4.

2 Figures taken from Micro Finance Paper submitted to BOD on November 29th, 2013 3 The repayment behavior maintained at 100% for the last few years by women clients strongly substantiate this argument. 4 A model commonly associated with Mayoux (1999 and 2000).

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These beliefs and influences resulted in a major breakthrough of establishing Village Banks

focusing extensively on women clients. The village banking model received wider recognition due

to multiple reasons; empowering women to take

a lead on managing these banks, introduction of

e.g. Community Investment Funds (CIF) offering

interest free loans, identify deserving clients

especially poor, low cost operations, generation

of employment opportunities at local level and

sustainable operations. During past few years,

SRSP, through 300 village banks have addressed

financial vulnerabilities of over 42,000 poor and

vulnerable women5 members thus re-shifting focus from men to women as also shown in the figure.

5 Figures taken from Micro Finance 65th BoD paper.

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2.1 AusAID-LSP supported Village Banks

A significant proportion of 300 village banks (40)6 as mentioned in preceding section has been supported

by AusAID-Livelihood Strengthening Project initiated in three districts; Peshawar, Nowshera and

Charsadda of KP. Amongst these, 14 village banks have been established in Districts Peshawar, 16 in

District Nowshera and 10 in District Charsadda. The details of clients, funds provided through AusAID

LSP and Internal loan lending in three districts are presented in table below:

Table 02-CIF progress and growth in terms of amount and beneficiaries (January 2011-Oct 2013)

District Funds provided through LSP

PKR in Million

Beneficiaries HHs in Nos.

Internal Lending

Loans PKR in million

Beneficiaries HHs

Cumulative loan

including funds from

LSP and ILL

Cumulative beneficiaries

CIF

IGGs

Total

CIF

IGGs

Total

Peshawar

6.99

0.86

7.85

600

184

784

11.29

946

19.14

1,730

Nowshera

8.00

0.98

8.98

697

195

892

10.23

884

20.26

1,776

Charsadda

5.00

0.63

5.63

421

153

574

7.55

591

13.17

1,165

Total

19.99

2.47

22.46

1,718

532

2,250

29.07

2,421

52.57

4,671

According to the figures mentioned in table 02 above, an increase of 134% in amount disbursed

and 93% increase in client coverage have been observed in all three districts under the

programme. The initial amount (PKR 22.46 million) provided through AusAID LSP has been

circulated by these 40 village banks to generate an addition amount of over 30 million in almost

three years of operations.

6 Figures taken from AusAID LSP progress reports, 2013. As per figures, 14 VBs are established in Peshawar, 16 in District Nowshera and 10 in District Charsadda.

2 Village Banks under

AusAID LSP

9

2.2 Village Banks targeting poor

Review of database and MIS maintained by AusAID LSP shows that overall these funds in all

three districts are mostly accessed by following three categories; 25% accessed by beneficiary

households falling in 0-11 category on PSC, 70% accessed by beneficiary households falling in

12-18 category on PSC, and 5% accessed by beneficiary households falling in 19-23 category on

Poverty Score Card. The details are also presented in table below:

Table 03- Poverty Band wise beneficiaries (Jan 11-Oct 13)

District

Poverty band 0-11

Poverty band 12-18

Poverty band 19-23

Beneficiaries

Amount disbursed (PKR in million)

Beneficiaries


Beneficiaries


Peshawar

518

4.78

1,173

13.96

39

0.40

Nowshera

600

5.68

1,016

11.92

160

1.60

Charsadda

307

2.45

817

10.30

41

0.41

Total

1,425

12.91

3,006

36.18

240

2.41

In context of KP, these figures become significant as availability of micro finance or small scale

loans is inexistent especially to poor and vulnerable women who generally have no social,

physical or financial collateral. One can be appreciative of the fact that adequate funds are

provided through AusAID LSP and accessed mostly (95%) by poor and vulnerable without any

collateral.

2.3 Utilization of Loans

The amount disbursed through village banks has been productively utilized by women

beneficiaries. Not surprisingly a

significant proportion (35%) of

loans availed are invested in

agriculture and livestock sector,

while women (57%) have also

utilized these loans for trading at

basic level (cloth, utensils, blankets

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etc). A nominal percentage (8%) of women was also found to be engaged in production and

services through these loans.

A very high percentage of women (67%) as per documents reviewed had utilized loan

themselves in sectors mentioned above.

The remaining 33% had availed and

invested the loan in joint businesses mostly

controlled either by their spouses or other

male members of their families. Differing

perspectives on sharing/surrendering

loans to their husbands or male members

exist. Few scholars have supported sharing loans, while others are against it and view it as

disempowering women7.

7 The joint decision making in view of Montgomery et al. (1996) reinforced patriarchy and gender inequalities, while the same is considered to be empowering by Mahmud (2003) as she argued that ‘cooperation and joint decisions with husbands or male relative is more empowering in matters that require access to public institutions’. Similarly surrendering loans to their husbands for productive activity is considered to be disempowering on the control index developed by Goetz and Sen (1996). On contrary, Hashemi et al., 1996 based on their study found that whilst utilization of loan by women contributes significantly to empowerment, even the loan used by husbands or relatives contributes to empowerment of women as compared to non members.

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3.1 The Driving Factor

Debates, in favor or against, as to actual effectiveness of innovative micro finance schemes e.g.

village banking in social, political and economic development vis-à-vis empowerment of

women continue. This fast track brief study explores effectiveness of village banks in

empowering of women and an assessment of selected aspects e.g. targeting right clients in

specific poverty bands, empowering women, developing a local management system etc. Other

follow up studies could also be initiated to further explore these mentioned aspects in greater

depth and details.

3.2 Objectives of the study

The major objective of the study was to assess role of Village Organizations/Banks (VOs/VBs)

in empowering women in selected three districts of Khyber Pakhtunkhwa under AusAID LSP.

In addition, the study also focused few key aspects comprising increase in income, improved

decision making and sustainable micro finance operations at local level.

3.3 Approach and Methodology

- The assessment was conducted through utilizing internal and external resources. The

evaluation team comprising team of independent consultants and SRSP MER

professionals led by Programme Manager, PMER carried out field visits to selected

village banks.

- A mix of tools was utilized to gather requisite information efficiently and effectively.

The tools comprised field visits, formal and informal discussions with field staff related

to village banks, observations, focus group discussions with office bearers and general

3 The Study

12

bodies of selected village banks, structured questionnaire (attached as an annex) and

review of key documents at various levels. The current discourse and detail literature on

the subject was also reviewed to further refine the results.

- Detail inputs were provided by the Programme Manager, Micro Finance during the

initial design phase to further refine tools and techniques to gather quality information.

- The independent consultants and SRSP head office PMER team were duly supported by

micro finance section and AusAid LSP district teams to arranging field visits. At field

level, the districts programme office AusAID LSP provided logistic support and

arranging meetings with village banks office bearers and general body members.

- Data collected was reviewed and punched in database designed for the study. Based on

the data, output tables providing specific information were generated for review and

detail analysis. The analysis led to write up of draft report, which was shared with micro

finance section, AusAID LSP teams and Chief Executive Officer, SRSP. The feedback was

incorporated to produce this final report.

- The study had an inherent limitation of utilizing internal resources. If resources

(financial) would have been made available, external consultants could have been

utilized to conduct this very interesting study. Nonetheless, an effort was made by

evaluation team to overcome biases through cross checks and validations.

3.4 Sample selection

A total of nine village banks were selected for the study keeping limited time and resources in

mind through random sampling technique. The sample represented 23% of the population,

which provided reasonable basis to draw results and facilitate in presenting a fair analysis. The

sample is given in table below:

District Number of VBs established Village Banks selected Percent of VBs selected

Peshawar 16 3 19%

Nowshera 14 3 21%

Charsadda 10 3 30

Total 40 9 23%

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The details of Village Banks selected as sample are presented below:

District

WCOs in the area

Number of

VOs

Population covered by

VBs and CBOs

Members in Management

(in Nos.)

Members in General

Body (in Nos.)

Members in Credit

Committee (in Nos.)

Members in SM

Committee (in Nos.)

Charsadda 24 3 2503 53 6 9 9

Agra Payan 8 1 1532 16 2 3 3

Azizabad 10 1 517 25 2 3 3

Mani Khela 6 1 454 12 2 3 3

Nowshera 24 3 1822 48 7 8 9

Ajab Bagh 5 1 350 10 2 2 3

Bara banda stop 13 1 1200 26 2 3 3

Nasir kaley 6 1 272 12 3 3 3

Peshawar 19 3 2390 38 6 9 9

Garhi sherdad 7 1 1200 14 2 3 3

Hindko Kaley 5 1 496 10 2 3 3

Panam Dheri 7 1 694 14 2 3 3

Grand Total 67 9 6715 139 19 26 27

On an average these village organizations/banks have been covering approx 100 households.

Generally these banks are headed by Chair and Vice Chair while Presidents and Secretaries

comprise general body of respective village organization/banks. These village banks have

recently established two distinct committees; social mobilization and credit to follow up on

process of social mobilization and efficient and effective micro credit operations. These village

banks have also employed one local member/village organization/bank as paid staff

commonly known credit extension workers to ensure timely disbursements and recoveries.

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4.1 Objectives of VOs/VBs and roles and responsibilities of various members

During focus group discussions, at least 67% of VOs/VBs members were found to be aware and

updated on purpose and objectives of VOs/VBs, while remaining 33% had a diverse opinion.

The members in Peshawar and Nowshera had a fair idea, while evaluation found that VOs/VBs

in Charsadda could further be supported to internalize objectives and purpose of these

VOs/VBs.

The management (chair and vice chair), members of general body and paid staff were well

aware of ‘roles and responsibilities’ assigned to them. At least 78 of management and paid staff

knew their responsibilities very well, while remaining 22% had some knowledge of their roles.

Again support could be provided to management and members of general body in VOs of

Charsadda to further improve the results. The management comprising chair and vice chair,

members of general body and paid staff were selected through consensus of majority of

members (more than two third). Interestingly there had been weightage assigned to test and

interview in case of selection of paid staff. This probably had been a reason that all credit

extension workers were found to be literate with minimum 10 years of education to maximum

16 years of education; 22% secondary certificate holders, 56% higher secondary certificate

holders and 22% master degree holders. This also had a positive effect on maintaining

appropriate records in almost all VOs/VBs visited during the process.

The average age bracket of paid staff, vice chair and chair ranged between mid 20s to late 30s.

Whilst chair and vice chair had been managing affairs of respective VOs for the past two years,

the paid staff (credit extension workers) had been in service for the past one year only. An

4 Major Findings

15

interesting factor observed was that 80% of management members were housewives having no

prior experience of such ventures. In such a case their effort in maintaining an appropriate level

of operations by them is indeed commendable.

4.2 Funds generated through VOs/VBs

Perhaps a most significant achievement of these village organizations/banks was generation of

additional funds through devising internal loan lending and recovery mechanisms. The

management, members of general body and paid staff have taken a lead in developing an

indigenous mechanism through which they charge a certain amount on every loan disbursed

thus generating addition resources to further facilitate other poor members.

The figures collected during visits to these 9 village banks reflected an overall 107% increase in

seed money provided through the programme. The success factor was even higher in District

Peshawar and Nowshera as 143% increase in seed money provided was observed. With an

average loan size of PKR 12,000 extended as CIF under AusAID LSP, 42 women could have

been benefitted through seed money provided initially to these VOs/VBs. Generation of

additional funds through internal loan lending mechanism from PKR 500,000 to PKR 1,036,222

have resulted in expanding coverage of programme and increase number of beneficiaries.

Referring to this notable success, these figures would be comparatively higher in District

Peshawar and Nowshera. Since a large chunk of these funds (95%) were accessed by poor and

vulnerable women falling in 0-18 category on poverty score card, therefore one can assume a

substantial increase in income of poor women benefiting from loan facility of VO/VBs.

4.3 Indigenous Management System

The evaluation also assessed transfer of roles and responsibilities from Sarhad Rural Support

Programme to management (chair, vice chair, members of the general body) of these local

village organizations/banks. The respective VO/VBs were assessed on 10 broad parameters

mentioned below (at start of VO/VB in 2011 and presently in 2013):

i) Maintaining VO accounting books and reconciliations

ii) Maintaining and checking community credit files and records

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iii) Maintaining karwai and saving registers

iv) Updating Management and SRSP on VO loan portfolio

v) Arranging meetings and facilitating donors visits

vi) Policy Compliance and ensuring minimum standards as per SoPs

vii) Identification of honest clients and collection of resolutions

viii) Processing credit cases and ensuring timely recovery

ix) Scoring of VO members community organizations

x) Recording increase in savings of member COs

The combined response analysis on shift of roles and responsibilities on mentioned parameters

has been aggregated in table presented below:

Districts

At start of VB (2011)

Presently after (at least) one year operations

(2013)

SRSP & VO staff Only VO/VB staff Total SRSP & VO staff Only VO/VB staff Total

Charsadda 34 11 45 6 39 45

Nowshera 34 11 45 3 42 45

Peshawar 22 23 45 9 36 45

Total 90 45 135 18 117 135

Percentage shift

67%

33%

100%

13%

87%

100%

Based on these figures, it was encouraging to observe a substantial shift in roles and

responsibilities. At start of VO/VB, technical support from SRSP had been quite prominent,

which with the passage of time has reduced substantially from 67% to 13%. Conversely

communities roles has enhanced from 33 to 87%, which itself can be termed as one of the major

achievements of the programme. This shift in roles and responsibilities has been viewed

positively by local communities with following multiple benefits:

- Good knowledge of area, identification of deserving members and their screening;

- Loan disbursement as per communities capacity and needs;

- Minimum transaction cost and relatively easy recovery of loans through peer pressure;

- Following local norms and cultural practices which enhance chances of women to interact with

VO/VBs management and paid staff.

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4.4 VOs/VBs immediate impacts

As per responses gathered, 100% community members unanimously agreed that loans

provided through VOs/VBs has resulted in an increase in income level of beneficiaries, besides

increasing net worth of small scale businesses/enterprises established at local level. In total, 190

existing business recorded an expansion, while 300 new businesses have been established in

these three districts. This income increase had positively affected living conditions characterized

by decrease at household level conflicts due to financial constraints and improvement in

household assets. In addition, an increase in income has also had positive effects on children

education.

4.5 VOs/VBs in improving women’s decision making

Participation of women in VOs/VBs activities had also influenced women decision making on

many fronts. This can be attributed to their improved financial status thus giving them

recognition to be important stakeholders in decision making at household level. The response

analysis suggested 89% women’s decision making to be improved moderately, while 11%

women’s decision making has been highly improved specifically in district Peshawar, which

may be due to its geographical proximity to urban centres or relatively better exposure of

women community members. The details of improved decision making are presented below:

Decision Making of women

All three districts

Total

Not improved

Moderately Improved

Highly Improved

HHs expenditure 0 8 1 9

Marriage of Children 0 8 1 9

Socialization / networking 0 8 1 9

Electoral decision 0 8 1 9

Business expansion 0 8 1 9

Decision about saving 0 8 1 9

Family Health 0 8 1 9

Participation in VO activities 0 8 1 9

Mobility 0 8 1 9

Total

0

72

9

81

Percentage %

0

89

11

100

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4.6 Sustainability of Village Organizations/Banks

Reviewing figures especially in terms of generation of funds by these village

organizations/banks, one can assume that these village organizations/banks have a good

potential to sustain. The dialogues conducted at local level produced useful information to

further probe aspects of sustainability.

The management, members of general body and community activist, during the discussion, had

a fair idea of VO/VBs expenses8 and income stream. Though income stream is not huge but still

on an average these VOs/VBs are generating a surplus of PKR. 2,000 through loan processing

fee only. These figures would present even a better picture if a detail assessment of respective

village organizations/banks is conducted to determine their net assets and incomes from all

heads.

An act of volunteerism was appreciable at local level. The management and members of general

body invested their time despite their busy schedules to ensure smooth operation of these

VOs/VBs. These members have also acquired a suitable location on subsidized rates for

establishing VO/VB office to facilitate, especially, poor women.

An interesting element was realization in all three districts to maintain frequency of loan

distribution at an appropriate level by management of VOs/VBs. This in their view would

generate additional funds to be further circulated contributing to sustainability. Currently all

members seemed to be happy with existing processing fee, while there were differing

perspectives on idea of increasing processing fee for increasing working capital. When asked

almost 90% community members thought that these village organizations/village banks can

sustain without SRSP support. The major roles which could be assumed by communities

immediately comprised monitoring and supervision, mentoring and coaching, and funds

management. These aspects are important and micro finance team should be appreciated for

developing local capacities in such a short span.

8 Expenses on account of Office Rent, petty cash, paid staff salary etc.

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5.1 Whether VOs/VBs have really contributed to Empowerment of Women?

Women empowerment is a multi-dimensional social process that helps them to gain control

over their own lives, enhance their ability to expand choices and exercise control, and act on

issues they deem important for improving their lives. Given multidimensionality of the process

of empowerment, whether these village organizations/banks have led to empowerment of

women was a major focus of this evaluation.

Based on the tables, figures and analysis presented, one can infer that collective action through

these village organizations/banks, access to small scale loans and its investment productively

have profound effects on improving women decision making role at household level, enhanced

control over material assets and improving their mobility at local level. The effects are more

visible in district Peshawar and Nowshera, nonetheless, district Charsadda is catching up and it

is envisaged that it would be at par with other two districts sooner or later.

During discussion, the women pointed out sharing their loans with their spouses/male

relatives. The evaluation team found it positive as utilization of micro credit or small loans in

KP context is more of family venture in which husbands and wives jointly participate in micro

credit utilization to maximize their profits for timely repayments. Notwithstanding joint

utilization of loans, beneficiary women are still better off in terms of economic gains and

decision making in comparison to non beneficiary women.

5 Conclusion and Way

Forward

20

These Village Organizations/Banks have, beyond any doubt, developed an inherent capacity of

local women in accounting knowledge and managerial control of loans, which should be

appreciated keeping low level of education and limited exposure of these women. These

women have proved to be better managers, when provided with a chance through such forums.

Though perception based, participants of numerous exercises during this evaluation indicated

an increase in income of beneficiaries, which would have contributed to reduction of poverty of

VO/VBs beneficiaries.

These VOs/VBs based on review and analysis of figures can be termed highly efficient as cost

per rupee lent is very low as compare to other models of micro credit followed/adopted by

SRSP. In terms of effectiveness, handing over the stick to local has proved to be pivotal.

Identification of deserving beneficiaries, assessment of clients’ capacities and need based

disbursements are few key aspects supporting effectiveness of these ventures. The tables, text

and analysis clearly indicated immediate impacts of these VOs/VBs, while healthy

disbursement and repayment rates and adequate processing fee generates surplus for these

VOs/banks to be sustainable.

5.2 Way forward

A similar programme9 evaluated by an external third party also suggested 94% visible and

moderate improvement in incomes of VOs/VBs beneficiaries, which suggest that an in-depth

analysis of income ‘before and after’ of VO/VBs beneficiaries under AusAID LSP in comparison

with non beneficiaries can also be conducted to further explore factor of effectiveness.

The evaluation, due to time and resource constraints picked few aspects for assessment. Based

on exposure to the field and interaction with communities, the evaluation team suggests

developing a composite empowerment index which may be based on independent decision

making, mobility, economic gains, ability to purchase, ownership of assets, domestic violence,

financial/transaction management, activism and networking etc. The index can further be

supported by collecting qualitative information for capturing ground realities and empirical

9 CIF component of BK poverty alleviation programme evaluated by AID (international) in 2013.

21

validation. These VOs/VBs have a potential to grow therefore support and strengthening of

VOs/VBs are strongly recommended. Based on systemic and organized approach adopted by

these VO/VBs, an expansion of its scope to improve and strengthen process of social

mobilization and social sector services in local areas can also be considered by relevant sections.

22

Literature Reviewed Batliwala, S. 2007. Taking power out of empowerment-an experiential account, Development in Practice, 17, 4(5), 557-565. Brau, J.C. & Woller, G. M. 2004. Microfinance, A Comprehensive Review of the Existing Literature, Journal of Entrepreneurial Finance and Business Ventures, Vol. 9, Issue 1, 2004, pp. 1-26. Cohen, M. 2000. Making Microfinance More Client-Led, Journal of International Development 14, 335-350. Easterly, W. 2005. What did structural adjustment adjust? The association of policies and growth with repeated IMF and World Bank adjustment loans. Journal of Development economics, 76(1), 1-22. Eyiah, A. K. 2001. An integrated approach to financing small contractors in developing countries, A conceptual model, Construction Management and Economics 19, 511-518. Johnson, S., & Rogaly, B. 1997. Microfinance and poverty reduction. London: Oxfam. Kabeer, N. 2005. Gender equality and women's empowerment, A critical analysis of the third millennium development goal, Gender & Development, 13: 1, 13-24. Kabeer, N. 1994. Reversed realities: Gender hierarchies in development thought, Verso Books, London, UK and New York, USA

Littlefield, E., Morduch, J., & Hashemi, S. 2003. Is microfinance an effective strategy to reach the Millennium Development Goals? Focus Note, 24, 1-11. Lucarelli, B. 2005. Microcredit, A cautionary tale, Journal of Contemporary Asia, 35(1), 78-86. Maes, J. P., & Reed, L. R. 2012. State of the Microcredit Summit Campaign report, 2012, Washington DC. Mahmud, S. 2003. Actually how empowering is microcredit? Development and change, 34(4), 577-605. Mayoux, L. 2000. Micro-finance and the empowerment of women: Int. Labour Office. Pitt, M. M., Khandker, S. R., & Cartwright, J. 2006. Empowering women with micro finance, Evidence from Bangladesh, Economic Development and Cultural Change, 54(4), 791-831. Rahman, A. (1999). Micro-credit initiatives for equitable and sustainable development: Who pays? World development, 27(1), 67-82. Weiss, J., & Montgomery, H. 2005. Great expectations, Microfinance and poverty reduction in Asia and Latin America, Oxford Development Studies, 33(3-4). Woller, G. 2002. From market failure to marketing failure, Market-orientation as the key to deep outreach in microfinance, Journal of International Development 14, 305-324.

Websites Accessed Micro finance Gateway, 2011, Washington DC, USA, viewed 3-5 December 2013 <http://www.microfinancegateway.org> The Micro Credit Summit Campaign, 2012, Washington DC, USA viewed 3-5 December 2013, <http://www.microcreditsummit.org/state_of_the_campaign_report/>

http://www.microfinancegateway.org/

http://www.microcreditsummit.org/state_of_the_campaign_report/

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Annex 1

Terms of Reference (ToRs)

Assessment study of village banks established under AusAID-LSP in district Peshawar, Nowshera and Charsadda

1. Background

SRSP under AusAID LSP has established 40 village Banks/Village Organizations extending CIF and IGGs to poor and vulnerable

women in selected three districts; Peshawar, Nowshera and Charsadda. These village banks are covering over at least 4,600 women

households or 34,500 population in selected villages of afore-mentioned districts. Village banks have significant achievements in

terms of enhancing women’s financial capital, mobility and establishing small scale businesses thus creating employment

opportunities. The notable achievements has urged SRSP to conduct a fast track assessment exploring selected aspects of village

banks.

2. Major objectives

The major objectives of the study are;

i) Assess role of village banks in empowering (capacity enhancement, financial and decision making) poor and vulnerable

women in target areas.

ii) Assess role of village banks in reaching its target group through appropriately developed packages/services.

iii) Assess potential of Village banks/organizations in facilitating other sectors e.g. social mobilization, social sector services etc.

3. Approach and Methodology

The assessment would be conducted through utilizing internal and external resources. The evaluation team comprising team of

independent consultants and SRSP MER professionals led by Programme Manager, PMER would carry out field visits to selected

village banks. A mix of tools would be utilized to gather requisite information efficiently and effectively. The tools comprise field

visits, formal and informal discussions with field staff related to village banks, observations, focus group discussions with office

bearers and general bodies of selected village banks, structured questionnaire (attached as an annex) and review of key documents

at various levels. The independent consultants and SRSP head office PMER team would be supported by Programme Manager

Micro Finance to refine methodology, tools and arranging field visits. At field level, the districts programme office AusAID LSP

would provide logistic support and arranging meetings with village banks office bearers and general body members.

4. Sample selection

A total of 28 village banks have been formed by AusAID LSP team in selected three districts of KP. Out of the total, 9 village banks

would be selected on random sampling basis for purpose of evaluation. Thus at least 32% of village banks would be selected for the

study providing a reasonable basis to reach plausible conclusions and drawing useful analysis.

5. Team selection and their roles and responsibilities

S. NO Designation Proposed roles and responsibilities

1 Programme Manager PMER, Head Office, SRSP

- Overall study design

- Developing questionnaire/tools and techniques for the study

- Field visits

- Review and analysis

- Final report

2. Programme Manager, Micro Finance - Review of questionnaire

- Review of study tools and techniques

- Technical inputs

- Coordination with field teams

3. Independent consultants x 2 - Joint development of tools and techniques

- Field visits and meetings with communities

- Data punching and producing requisite output tables

4. Programme Officer, MER, Head Office, SRSP and Programme Officers MER, AusAID-LSP

- Data collection and field visits

- Meeting with village banks office bearers and general body members.

5. District Programme officers AusAID-LSP - Arranging field visits

- Setting up meeting with selected village banks

- Logistic support to evaluation team.

24

6. Time frame for the study

The study would be completed in approx three weeks starting from November 18th to December 4th, 2013. During this mentioned

period the evaluation team would ensure development of tools and techniques, field visits, meetings, data punching, analysis and

producing final report. The action plan is presented below:

Tasks November 2013 December 2013

18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4

Documents review, ToRs development and & approval

Developing study tools and techniques

Agreement on study tools and techniques

Coordination for arranging field visits

Field visits, meeting and data collection

Data punching and initial level review

Final review and analysis and report writing

Report sharing, feedback and finalizing report

7. Budget for the study

Designation Unit cost (in PKR) Number of days Total cost (PKR)

PM, PMER - 18 -

PM, Micro Finance - 3 -

Mr. Atta Ullah (Consultant) 7,000 18 126,000

Mr. Saleem Shah (Consultant) 6,000 15 90,000

PO, MER, Head Office - 5 -

PO, MER, AusAID LSP - 5 -

District Programme Officers - 5 -

District Credit officers - 5 -

Logistics Lump sum 4 50,000

Printing and Communication Lump sum - 25,000

Total 291,000

25

Annex 2 Questionnaire

Date / /

A. Name o f the region (A1) __________________ B. District (A2) ___________________

C. Union Council (A2a) ____________________ D. SOU (A3) ____________________

E. VB/O name (A4)__________________ F. Type of VB/O (A5) men____ women ___ mix ___

G. D.O.F (A6) _________________ H. Villages under VB/O (A7) ____________________

I. Population of UC (A8) ______________ J.

1. Number of men and women community organization in the area

Community Organizations MCO WCO Total

Part of the VO (A9) (A10) (A11)

Not part of the VO (A12) (A13) (A14)

Total (A15) (A16) (A17)

C. Percent House hold coverage of VO

a. In the village (A18)……………………. b) In the UC (A19) …………………….

2. Detail of Different Committees

Committees Yes/No Male Female Total

General Body (C1) (C2) (C3)

Management (C6) (C7) (C8)

Credit committee (C11) (C12) (C13)

Social Mobilization Committee (C16) (C17) (C18)

Total (C21) (C22) (C23)

3. Detail of Management (Chair and Vice Chair)

Description Chair Vice Chair

Name (F1) (F2)

Age (in completed years) Years (F3) ……. Years (F4) …….

Years in Office Years (F5) ……. Years (F6) …….

Education (circle one option ) (F7) (F8)

Residence (circle one option )

(F9) In Village……………..1 Nearby………………..2 Town…………………..3 Others(Specify)………4

(F10) In Village……………..1 Nearby………………..2 Town…………………..3 Others(Specify)………4

Trainings Attended

LMST (circle one option ) (F11) Yes….1 No……2 (F12) Yes….1 No……2

Basic Activist Training (F13) Yes….1 No……2 (F14) Yes….1 No……2

Training on TORs (Mentoring, Coaching and on job trainings)

(F15) Yes…………………….1 No……………..………2

(F16) Yes…………………….1 No……………..………2

Primary occupation (circle one option ) (F17) (F18)

4. Detail of Paid staff

Description Social Animator

Name (H1)

Age (in completed years) Years (H4) …….

Years in Office Years (H7) …….

Education

Residence (circle one option )

(H13) In Village……………..1 Nearby………………..2 Town…………………..3 Others(Specify)………4

Training Attended (circle one option )

Training on TORs (Mentoring, Coaching and on job trainings)

(H16) Yes…………………….1 No……………..………2

Any other……. (H19) Yes…………………….1 No……………..………2

Primary occupation (circle one option )

26

5. Mission, Vision or Purpose of the VO

What is the purpose of the VO Tick relevant

Members of different committees have no idea purpose and objectives of the VO (i1)

Members have a diverse opinion about mission/objectives of the VO (i2)

All members of the different committees have good understanding about purpose and functions of VO (i3)

6. Management and Knowledge about their Responsibilities

Committees Know their responsibilities well Have some knowledge of Don’t know about

Management (i4)

General body (i6)

Paid Staff (i12)

7. How are different committees formed

General body Formed since Total members Tenure Selection Process (use key)

Management (j13) (j14) (j15) (j16)

Paid staff (j25) (j26) (j27) (j28)

Key: 1. Appointed by SRSP staff 2. Chair and Vice Chair (selected by consensus) 3. Through annual elections/selection by consensus 4. Test and interview conducted by VO and SRSP staff. 5. Possess requisite skills 6. Reside locally 7. Any other (please specify)……………………………………………………………………..

8. What different types of training were given to the Committees?

Management

Paid Staff

Any other committee or staff

9. What are different products and services of the VO

Products Amount Year How many revolved so far

Seed Money

10. Products

Amount Number of people Used for Processing fees Loan period

Income generation grants

Enterprise development loan

Micro credit

11. Locally Managed Financial System

Who is maintaining/ensuring the following At start of VO Present

VO staff and SRSP

Only VO Staff VO staff and SRSP Only VO Staff

Accounting Books (k1) (k2) (k3) (k4)

Credit Files/ Records (k4) (k5) (k6) (k7)

Karawai Register of the VO (k8) (k9) (k10) (k11)

Savings Register of the VO (k) (k) (k) (k)

Bank accounts maintenance and reconciliations (k12) (k13) (k14) (k15)

Periodic update on the VO loan portfolio to General Body, VO management and SRSP-Branch

(k16) (k17) (k18) (k19)

Generation of financial reports (k20) (k21) (k22) (k23)

Arrangements for VO- GB meetings, manager conference, outsiders/ donors’ visits to VO

(k24) (k25) (k26) (k27)

Policy compliance with respect to VO general administration (k28) (k29) (k30) (k31)

Checking of communities records in CO meeting, identifying shortcomings to VO management

(k32) (k33) (k34) (k35)

Collection of credit resolutions (k36) (k37) (k38) (k39)

Identification of honest clients for credit disbursement (k40) (k41) (k42) (k43)

Processing of credit cases and ensuring time recovery (k44) (k45) (k46) (k47)

Scoring of the VO member community organizations (k48) (k49) (k50) (k51)

Ensure increase in savings member community organizations (k52) (k53) (k54) (k55)

Ensure quality of a member community organization in line with the desired standards

(k56) (k57) (k58) (k59)

12. What are benefits of handing over management to the locals?

Benefits or plus points Yes/No

They have good knowledge about the people and area (k60)

Credit worthy people can easily be identified (k61)

Client screening is easy for credit worthy borrowers (k62)

Loan disbursement as per capacity and need (k63)

Local management can handle loan recovery easily (k64)

Cost of transaction is minimized (k65)

27

Loan purpose can be verified easily (k66)

It is suitable for women of the area to interact with local people (k67)

Local people can influence through peer pressure to recover loans (k68)

Any other (k69)

13. How VO is strengthening COs in the area

CO activities for strengthening COs Yes No

New CO formation (L1) (L2)

Identification of new community for CO formation (L3) (L4)

VO ensure the increase in saving balance of the COs at certain level (L5) (L6)

VO ensure quality records at CO level (L7) (L8)

VO arrange meetings for the CO (L9) (L10)

VO monitor, scores and promotes competition among COs and distributes awards among best COs (L11) (L12)

VO has formalized meetings at CO level (L13) (L14)

Savings of the COs have been improved (L15) (L16)

Developing COs association with local and non local institutions (L17) (L18)

Technical and managerial capacities of the COs have been improved (L19) (L20)

Any Other……………… (L21) (L21)

14. Role of VO in addressing Poverty

Household situation improved (L22) a) Yes b) No

If yes in what ways (L23) (Tick relevant)

a) Income level increased b) Household level conflicts reduced c) Children are going to schools/ better Schools d) Household assets increased (House constructed, vehicle or motor cycle purchased) e) Improved resilience to external shocks f) Any other……………………………

15. Immediate Impact of the VO

Not Improved Improved Substantially Improved

Poverty status of the client (L24)

Children going to Public School (L25)

Total annual Income of household (L26)

Total annual income of the loanee (L27)

Total worth of business/enterprise (L28)

16. Change in Decision Making Powers of Women after VO

Decision Making of women No Change Moderately Improved Highly Improved

Household expenditure (h15) (m1) (m2) (m3)

Marriage of Children (h16) (m4) (m5) (m6)

Socialization / Entertainment (h17) (m7) (m8) (m9)

Electoral decision (h18) (m10) (m11) (m12)

Business expansion (h19) (m13) (m14) (m15)

Financial decisions (h20) (m16) (m17) (m18)

Spending on self (h21) (m19) (m20) (m21)

Decision about saving (h22) (m22) (m23) (m24)

Employment of children/relative (h23) (m25) (m26) (m27)

Family Health (h24) (m28) (m29) (m30)

Participation in SRSP activities (h25) (m31) (m32) (m33)

Mobility (h26) (m34) (m35) (m36)

Professional Networking (h27) (m37) (m38) (m39)

Any other (m40) (m41) (m42)

17. Impact of VO on Businesses What impact the VO has on existing businesses in the area

a) Positively b) Negatively

If positive, how many VO borrowers have strengthened their existing businesses ------------------------------------------------------------------------------------------------------------ If positively, how many of the bank borrowers have established new businesses ----------------------------------------------------------------------------------------------------------- 18. What would be the effect on VO when any of the following is withdrawn?

Can sustain Cannot sustain

Overall supervision and guidance by SRSP (m1)

Provision of Training by SRSP (m2)

Funds provision by SRSP (m3)

Coaching and mentoring by SRSP (m4)

Monitoring (m5)

28

19. Costs and income of the VO, Financial Sustainability

Costs Heads Per month Income heads Per months costs

Office Rent (M6) Fee Amount (M8)

Petty Cash (M9) Bank Profit (M11)

Staff (M12) COs fees (fixed) (M14)

Management Committee Expenses (M15) Any other (M17)

Any others…… (M18) (M20)

Total (M21) (M23)

20. Challenges of the VO

1. Do you know that what types of financial costs are associated with your bank (N1) a. Yes b) No b. If yes then list them

i. ………………… ii)…………………. iii)……………………. 2. What do you think to be important regarding sustainability of bank (N2)

a. Loan amount availability (N2) Yes/No b. Capacity to bear all the costs in extending the credit and other services (N3) Yes/No c. Any other (N4) ……………………………….

3. For sustainability of the VO what other services or contributions you are making a. Building (N5) Yes/No b. Volunteers services (N6) Yes/No c. Bearing the cost of operation (N7) Yes/No d. Any other (N8) ……

4. How the capacity of the VO can be enhanced in order to meet all the financial costs (N9) a. Increase the application fee micro credit …….. b. To continue with existing loan fee and increase the loaning c. Any other……………………..

5. Any suggestion about sustainability of the bank (N10) _____________________________________________________________________________________

Annex 3

Table 1 Detail of VOs

Table 2 Age of Chair, Vice Chair and CEW

Values Charsadda Nowshera Peshawar Grand Total

Average of Age of Chair 32 41 39 37

Average of Age of Vice Chair 30 25 25 27

Average of Chair in office 2 2 2 2

Average of Vice Chair in office 1 2 2 1

Average of Age of CEW 29 23 23 25

Average of CEW years in office 1 1 1 3

Table 3 Education of Chair and Vice Chair

Row Labels Charsadda Nowshera Peshawar Grand Total

Nil 1 2 3

Primary 1 1

Middle 2 2

Matric 1 1

Graduate 1 1 2

Grand Total 3 3 3 9

Table 4 Education of Vice Chair


Nil 1 1

Primary 1 1

Middle 1 2 3

Matric 1 1 2

Graduate 1 1 2

Grand Total 3 3 3 9

Row Labels Number of VOs Total Population WCO

GB Members

Management members

Credit Committee Yes/No

Credit Committee Members

SM committee members

Charsadda 3 2503 24 53 6 3 9 9

Agra Payan 1 1532 8 16 2 Yes 3 3

Aziz abad 1 517 10 25 2 Yes 3 3

Mani Khella 1 454 6 12 2 Yes 3 3

Nowshera 3 1822 24 48 7 3 8 9

Ajab Bagh 1 350 5 10 2 Yes 2 3

Bara banda stop 1 1200 13 26 2 Yes 3 3

Nasirkalley 1 272 6 12 3 Yes 3 3

Peshawar 3 2390 19 38 6 3 9 9

Garhi sherdad 1 1200 7 14 2 Yes 3 3

Hindkko Kalli 1 496 5 10 2 Yes 3 3

Panam Dheri 1 694 7 14 2 Yes 3 3

Grand Total 9 6715 67 139 19 9 26 27

30

Table 5 Education of CEW


F.A 1 2 2 5

M.A 1 1

M.A urdu 1 1

Matric 1 1 2

Grand Total 3 3 3 9

Table 6 Occupation of Chair

Count of Chair Primary Occupation Column Labels


Dairy business 1 1

house wife 2 3 2 7

private teacher 1 1

Grand Total 3 3 3 9

Table 7 Vice Chair Primary occupation

Count of Vice Chair Primary Occupation Column Labels


House wife 1 2 2 5

private teacher 1 1

Grand Total 2 2 2 6

Table 8 VO officials know their responsibilities

Nowshera Peshawar Grand Total

Members have idea about purpose with diverse opinion 2

6

have good understanding 3 6 9 18

Total 8 9 24

Table 9 Management know their responsibilities or not

Management know their responsibilities

Column Labels

Charsadda Nowshera Peshawar Grand Total

Very well 1 2 2 5

Have some knowledge 2 1 1 4

Do know 0 0 0 0

Grand Total 3 3 3 9

Table 10 General body know their responsibilities or not

General body know their responsibilities

Column Labels


Very well 1 3 3 7


Do know 0 0 0 0

Grand Total 3 3 3 9

31

Table 11 Paid staff know their responsibilities or not

Paid staff know their responsibilities

Column Labels


Very well 3 3 3 9


Do know 0 0 0 0

Grand Total 3 3 3 9

Table 12 General Body selection Process

GB selection Process 1. Appointed by SRSP staff Column Labels


Selection by Chair and vice chair through consensus 2

1 3

Through consensus of all 1 3 2 6

Test and interview 0 0 0 0

Possess requisite skills 0 0 0 0

Grand Total 3 3 3 9

Table 13 Management Selection Process

Management Selection Process Column Labels


Selection by Chair and vice chair through consensus 2

1 3

Through consensus of all 1 3 2 6

Test and interview 0 0 0 0


Grand Total 3 3 3 9

Table 14 Paid staff selection Process

Paid staff selection Process Column Labels


Selection by Chair and vice chair through consensus 2 1 1 4

Through consensus of all

1 2 3

Test and interview 1 1 2


Grand Total 3 3 3 9

32

Table 15 Product and Services of VOs

Column Labels

Values Charsadda Nowshera Peshawar Grand Total

Average of Seed Money Amount 500,000 500,000 500,000 500,000

Average of How many revolved so far 676,667 1,105,333 1,326,667 1,036,222

Average of Total resolved (seed money plus resolved) 1,176,667 1,605,333 1,826,667 1,536,222

Average of IGG amount 61,667 60,000 60,000 60,556

Average of Total resolved plus IGG 738,333 1,165,333 1,386,667 1,096,778

Average of Total Including IGG, revolved and seed money 1,238,333 1,665,333 1,886,667 1,596,778

Sum of Number of beneficiaries’ of CIF loan 121 302 210 633

Sum of IGG number of beneficiaries 46 36 47 129

33

Locally Managed Financial System

Table 16 Who was/ is maintaining VO Accounting books at the Start and Now

Districts At the start when VO established Currently after at least one year passed

Total VO staff and SRSP Only VO Staff Total VO and SRSP Only VO Staff

Charsadda 3 0 3

3 3

Nowshera 3 0 3

3 3

Peshawar 3 0 3 2 1 3

Grand Total 9 0 9 2 7 9

Table 17 who is maintaining credit files and records



Charsadda 3 0 3 0 3 3

Nowshera 3 0 3 0 3 3



Table 18 Who is maintaining Karawai Register of the VO







Table 19 Who is maintaining Saving Register of the VO







Table 20 Who is maintain VO accounts and reconciliations







34

Table 21 Periodic update on the VO loan portfolio to General Body, VO management and SRSP-Branch







Table 22 Arrangements for VO- GB meetings, manager conference, outsiders/ donors’ visits to VO







Table 23 Policy compliance with respect to VO general administration







Table 24 Checking of communities records in CO meeting, identifying shortcomings to VO management


Total

VO staff and SRSP Only VO Staff Total VO and SRSP Only VO Staff





Table 25 who is maintaining, Collection of credit resolutions







35

Table 26 Who was/is maintaining, Identification of honest clients for credit disbursement





Peshawar

3 3 0 3 3


Table 27 who was/is maintaining, Processing of credit cases and ensuring time recovery







Table 28 Who was/is maintaining, Scoring of the VO member community organizations,







Table 29 who was/is maintaining, ensuring increase in savings member community organizations







Table 30 who was/is maintaining, ensuring quality of a member community organization in line with the desired standards




Nowshera 2 1 3

3 3



Table 31 What are the Benefits of handing over management to locals

Charsadda Nowshera Peshawar

Values Yes No Yes No Yes No

They have good knowledge about the people and area 3 0 3 0 3 0

Credit worthy people can easily be identified 3 0 3 0 3 0

Client screening is easy for credit worthy borrowers 3 0 3 0 3 0

Loan disbursement as per capacity and need 3 0 3 0 3 0

Local management can handle loan recovery easily 3 0 3 0 3 0

Cost of transaction is minimized 3 0 3 0 3 0

Loan purpose can be verified easily 3 0 3 0 3 0

It is suitable for women of the area to interact with local people 3 0 3 0 3 0

Local people can influence through peer pressure to recover loans 3 0 3 0 3 0

36

Table 32 How VO is strengthening COs in the area

VO activities for strengthening COs Charsadda Nowshera Peshawar

Yes No Yes No Yes No

New CO formation 3 0 2 1 3

Identification of new community for CO formation 3 0 2 1 3 0

VO ensure the increase in saving balance of the COs at certain level 3 0 2 1 3 0

VO ensure quality records at CO level 3 0 2 1 3 0

VO arrange meetings for the CO 3 0 2 1 3 0

VO monitor, scores and promotes competition among COs and distributes awards among best COs 3 0 2 1 3 0

VO has formalized meetings at CO level 3 0 2 1 3 0

Savings of the COs have been improved 3 0 2 1 3 0

Developing COs association with local and non local institutions 3 0 2 1 3 0

Technical and managerial capacities of the COs have been improved 3 0 2 1 3 0

Table 33 Role of VO in addressing Poverty

Role of VO in addressing Poverty Charsadda Nowshera Peshawar


Household Situation Improved 3 0 3 0 3 0

Income level increased 3 0 3 0 3 0

Household level conflicts reduced 3 0 3 0 3 0

Children are going to schools/ better Schools 3 0 2 1 3 0

Household assets increased (House constructed, vehicle or motor cycle purchased) 3 0 2 1 1 2

Improved resilience to external shocks 1 2 2 1 1 2

Table 34 Immediate Impact of the VO

Immediate Impact of the VO


N Improved Improved S. Improved N. Improved Improved S. Improved N. Improved Improved S. Improved

Poverty status of the client 0 3 0 0 3 0 0 3 0

Children going to P. School 0 3 0 0 3 0 0 3 0

Total annual Income of HH 0 3 0 0 3 0 0 3 0

Total annual income loanee 0 3 0 0 3 0 0 3 0

Net worth of enterprise 0 3 0 0 3 0 0 3 0

Table 35 Decision making of women

Decision Making of women Charsadda Nowshera Peshawar

N Improved M Improved H Improved N Improved M Improved H Improved N Improved M Improved H Improved

Household expenditure 0 3 0 0 3 0 0 2 1

Marriage of Children 0 3 0 0 3 0 0 2 1

Socialization / Entertainment 0 3 0 0 3 0 0 2 1

Electoral decision 0 3 0 0 3 0 0 2 1

Business expansion 0 3 0 0 3 0 0 2 1

Business expansion 0 3 0 0 3 0 0 2 1

Spending on self 0 3 0 0 3 0 0 2 1

Decision about saving 0 3 0 0 3 0 0 2 1

Employment of relative 0 2 0 0 3 0 0 2 1

Family Health 0 3 0 0 3 0 0 2 1

Participation in SRSP act. 0 3 0 0 3 0 0 2 1

Mobility 0 3 0 0 3 0 0 2 1

Professional Networking 0 3 0 0 3 0 0 2 1

37

Table 36 Impact on business

Count of What impact the VO has on existing businesses in the area, 1. Positively Column Labels

Row Labels Positive Negative Grand Total

Charsadda 3 0 3

Nowshera 3 0 3

Peshawar 3 0 3

Grand Total 9 0

9

Table 37 Positive impact on Existing Business

Sum of If positive, how many VO borrowers have strengthened their existing businesses Number of Shops Grand Total Row Labels 2 5 8 20 25 40 50

Charsadda 2 40 42

Nowshera 8 25 50 83

Peshawar 5 20 40 65

Grand Total 2 5 8 60 25 40 50 190

Table 38 Positive impact on New Businesses

Sum of If positive, how many VO borrowers have established new businesses Number of Shops Grand Total Row Labels 2 20 25 35 50 60 70

Charsadda 2 40 42

Nowshera 20 35 60 115

Peshawar 25 50 70 145

Grand Total 2 60 25 35 50 60 70 302

Table 39 What would be the effect when SRSP support is withdrawn

SRSP Support Column Labels

Charsadda

Nowshera

Peshawar

Overall supervision and guidance by SRSP

Can Sustain 3 2 3

Cannot Sustain

1

Provision of Training by SRSP

Can Sustain 3 2 3

Cannot Sustain

1

Funds provision by SRSP

Can Sustain 3 2 3

Cannot Sustain

1

Coaching and mentoring by SRSP

Can Sustain 3 2 3

Cannot Sustain

1

Monitoring

Can Sustain 3 2 3

Cannot Sustain

1

38

Table 40 Costs and Income of the VO

Expanses Charsadda Nowshera Peshawar Grand Total

Office Rent per months 2000 1833 2000 1944

Staff salary per month 5000 5000 5000 5000

Petty cash per month 200

500 400

Management Committee Expanses per month Income

Bank Profit per month

Fee amount per month 8000 10333 8667 9000

Table 41 What do you think to be important regarding sustainability of bank



Loan amount availability 3 0 3 0 3 0

Capacity to bear all the costs in extending the credit and other services 3 0 3 0 3 0

Table 42 For Sustainability of the VO what volunteer services are you making

Values



Building (N5) Ye/No 3 0 3 0 3 0

Volunteers services (N6) Yes/No 3 0 3 0 3 0

Bearing the cost of operation (N7 Yes/No 3 0 3 0 3 0

Table 43 how the capacity of the VO can be enhanced in order to meet all the financial costs (N9)

Increase the application fee micro credit Yes/No Charsadda Nowshera Peshawar Grand Total

No 2 1 1 4

Yes 1 2 3

Grand Total 3 1 3 7

To continue with existing loan fee and increase the loaning Yes 3 3 2 8

Grand Total 3 3 2 8

Government & Nonprofit

Assessment of Village Organizations/Banks under AusAID-LSP in three districts of Khyber Pakhtunkhwa